CCI Approves Acquisition of Stakes in BW Coal Mine by Nippon Steel and JFE Steel

On December 20, 2024, the Competition Commission of India (CCI) received a notification regarding the proposed acquisition of interests in the BW Coal Mine, Queensland, Australia, by Nippon Steel Corporation, NS Blackwater Pty Ltd, JFE Steel Corporation, and JFE Steel Australia (BW) Pty Ltd. The notification was pursuant to a series of agreements executed on August 21, 2024, involving the transfer of assets and land from Whitehaven entities to the acquirers.

Under the proposed transaction, NS Blackwater will acquire a 20% stake and JFE Steel BW a 10% stake in the coal mine, along with related coal offtake arrangements.

The CCI assessed the transaction independently of the offtake agreements, examining potential horizontal and vertical overlaps in the coal and steel markets in India. The overlaps were found to be limited, with combined market shares ranging between 0–10% in coal and 5–20% in steel. Noting the fragmented nature of these markets and the presence of significant competitors, the CCI concluded that the combination is unlikely to result in any appreciable adverse effect on competition.

Accordingly, the proposed combination was approved under Section 31(1) of the Competition Act, 2002, by order dated February 18, 2025, following review under Section 20(4) of the Act.